MOU China-Ecuador on FTA negotiations
According to a joint statement issued Saturday after a meeting between the two countries' presidents, China and Ecuador have agreed to launch negotiations on a free trade agreement to promote their comprehensive strategic partnership.
Chinese Minister of Commerce Wang Wentao recently signed a memorandum of understanding with Julio José Prado, minister of Production, Foreign Trade, Investments and Fisheries of Ecuador, marking the official launch of the Free Trade Agreement (FTA) negotiations.
According to the statement, the two nations agreed to launch negotiations on reaching a free trade agreement, tapping into each other's trade potential, optimizing value chains, promote trade and investment liberalization, in addition to facilitating and promoting sustained and diversified development of bilateral trade, while continuing to deepen cooperation in a variety of fields including digital economy and green development.
In 2021, the total bilateral trade between China and Ecuador reached 10.95 billion USD, a year-on-year increase of 44.5%. China has become Ecuador's second largest trading partner for two consecutive years.
China has already signed a number of FTAs and DTAs with South American countries: the first FTA between China and South American countries is China – Chile FTA, it was signed on 18 Nov 2005. China – Peru FTA was signed on 28 April 2009, now China and Peru are negotiating about the FTA update. On 9 July 2018, on the first anniversary of the establishment of diplomatic relations between China and Panama, China and Panama signed an MOU, announcing the official start of FTA negotiations.
On 5 Aug 1991, China signed the Double Tax Agreement (DTA) with Brazil, it’s the first DTA between China and South American countries. Then China signed DTA with Venezuela on 17 April 2001, with Ecuador on 21 Jan 2013, with Chile on 25 May 2015. China also signed the DTA with Argentina on 2 Dec 2018, that is not yet effective.